IFRS 14 Regulated Industries

This outlines the details of IFRS 14 Regulatory Deferral Accounts, an accounting standard issued by the International Accounting Standards Board in January 2014. This standard offers a temporary exemption for first-time adopters of IFRS, allowing entities engaged in rate-regulated activities to continue recognizing and measuring regulatory deferral account balances using their previous GAAP (Generally Accepted Accounting Principles). The primary objective is to specify financial reporting requirements for these balances, which arise when an entity's pricing is subject to rate regulation, focusing mainly on presentation and disclosure. IFRS 14 requires separate line items for regulatory deferral account balances on the statement of financial position and mandates specific disclosures to help users understand the nature and risks associated with the rate-regulated activities. The document also addresses the standard's interaction with other IFRS standards, such as how it affects reporting on income taxes, earnings per share, and business combinations.